Broker Knowledge Quiz

1. A "regulated broker" means...

Profitable broker Broker authorised by a financial regulator in some jurisdiction Broker with the lowest spreads Broker with a website

2. An "ECN" account typically charges...

Wide spreads, no commission Tight raw spreads + per-lot commission Only swap, never spread Annual subscription

3. Why might one broker show different spreads than another on the same pair?

One is wrong Differences in liquidity providers, account type, commission model, and entity Time zone errors Trading hours

4. "Negative balance protection" means...

Brokers pay you when you lose Account balance cannot go below zero You cannot trade in losing pairs Spreads are removed

5. Same broker brand can have different rules in different countries because...

Marketing variation It operates multiple legal entities under different regulators Random Currency conversion

6. Swaps on overnight positions are charged because...

Brokers want extra profit Of the interest-rate differential between the two currencies Of geographic location Of weekend lengths

7. A "Market Maker" broker model means...

Broker connects only to ECN Broker may take the other side of trades internally Broker only quotes once a day Broker is government-owned

8. Which is a green flag for broker due diligence?

Aggressive bonus offers and signal services Verifiable license number on the regulator's register Promise of guaranteed returns Anonymous Telegram support

9. Cashback / IB rebates are funded by...

User deposits Broker IB commission paid to the partner, then shared Government grants Trading losses of other users

10. Inactivity fees apply when...

You trade too much Account has no trading activity for a defined period You log in too often Your spread is too low

11. Before opening any broker account, you should...

Skip reading T&Cs Verify entity, regulation, country availability, costs, and withdrawal policy Trust an Instagram ad Deposit immediately